Use the Information Below to Answer the Following Question(s)

question 47

Multiple Choice

Use the information below to answer the following question(s) .Raymaster is a small computer software company which uses the account analysis method and has hired you to perform some management advisory services.The company sold 2,500 high quality payroll programs last year.
-What is the total cost per unit sold?

• A)$240.00
• B)$288.00
• C)$358.40
• D)$362.40
• E)$462.40

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Definitions:

Contribution Margin Ratio

A ratio that measures the proportion of each sales dollar remaining after variable costs have been deducted.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit of a product, indicating how much each unit sold contributes to covering fixed costs and generating profit.

Break-even

The situation in which complete costs equate to total revenues, achieving a break-even point with no gains or losses.

Unit Sales

The number of individual units sold by a company during a specific period.